Page 124 - bne IntelliNews SE Outlook Regions 2024

However, international mining giant Rio Tinto’s plans to set up a huge lithium mine in Jadar, Serbia were thwarted when the government cancelled licences for the project, following a wave of mass protests. Activists, however, claim the $2.4bn project has not been fully scrapped, and Rio Tinto executives say they are still interested.
Serbia has carved out a strong niche in the manufacturing of auto components, thanks to its proximity to Central European automakers and relatively low costs.
Auto parts manufacturing has been targeted by multiple FDI investments in recent years, encouraged by government subsidies.
However, Serbia has also attracted investments to other sectors. Some of the recent announcements include: Jaga, a Belgian producer of air conditioners, plans to open a production facility and a research and development centre in the MIND Industrial park in Kragujevac; Italian heating systems company Ariston is set to invest €75mn in a factory in Nis, and local Ecoglobal BTD plans to build an extruded starch factory in Zrenjanin.
In the defence sector, the defence ministry announced in December that it has signed contracts with industry representatives within a financial package totaling €100mn. The majority of the funds will be allocated to companies within the Defence Industry of Serbia Group, while the remainder will be directed to institutes within the group.
The investments will further increase the production capacity of factories and will establish production lines for the serial production of new weapons and military equipment. They are a crucial step in Serbia's second cycle of investments dedicated to reinforcing domestic production and overhaul capacities. The ultimate goal is to intensify the production and modernisation of weapons and military equipment, catering specifically to the needs of the Serbian army.
5.10.4 Major Sectors & Companies
Serbia’s agriculture sector rebounded strongly in 2023 after it was badly hit by droughts in 2022. Farmers also received subsidy support from the government after sharp increases in prices of fuel and other inputs following the start of the war in Ukraine.
Construction grew strongly from a low base after a protracted contraction in the sector. The rebound followed the launch of several large public infrastructure projects.
124 SE Outlook 2024 www.intellinews.com